Egypt has officially become a founding member of the Asian Infrastructure Investment Bank (AIIB), China’s Ministry of Finance said Tuesday evening.
A total of 50 founders have joined the China-backed AIIB, amongst the most recent being Russia and Norway.
By becoming a founding member, Egypt will gain noticeable benefits, particularly as the country’s main needs are in infrastructure development. This will require billions of dollars in investments. Egypt will receive concessional loans and investments in this particularly needed area, Fakhry Elfiky, Professor of Economics at Cairo University and former assistant to the executive director of the International Monetary Fund (IMF), previously told Daily News Egypt.
Egypt had sent a request to join the bank at the beginning of April, whereby China had welcomed the country’s request. The final decision, however, was in the hands of its approved founders, including China, India, Singapore, Italy, and the UK amongst others.
Initial capital for the bank is to reach $50bn, where this amount is planned to be doubled in the future.
The main purpose of the bank, as its name stands, is that it will provide loans and investments in infrastructure to underdeveloped Asian countries. Elfiky added: “Member countries will benefit by receiving infrastructure investments from the AIIB.”